Valuation of Midstream Company Legal Entity and Assets for Tax Planning Purposes

June 2023
TOP was engaged by a midstream oil and gas terminal and pipeline operator with an estimated enterprise value in excess of $5.0 billion to estimate the fair market value of a Permian-based operating entity and its property, plant, and equipment.  The valuation was prepared for tax planning purposes.

The legal entity’s business consisted of a crude oil gathering and processing operation, including a pipeline system and three terminals, in the Permian basin of West Texas.  Discounted cash-flow and guideline public company analyses were utilized to estimate the enterprise value of the business.  The entity’s assets included over a dozen land parcels, pipelines and associated equipment, tanks, pumping equipment, and other related operating equipment.  The legal entity’s land was valued using the sales comparison method of the market approach and its personal property was valued using a combination of the direct and indirect methods of the cost approach.

About Tall Oaks Partners

Based in Houston, TX, Tall Oaks Partners provides valuation and financial advisory services to corporate management of public and private companies, investment and fund managers, and stakeholders in businesses of a variety of scale. The Tall Oaks Partners team has significant experience assisting clients with a multitude of valuation matters for strategic, tax, and financial reporting purposes. Our services and deliverables are tailored to client needs and prevailing industry and economic trends.

 

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